Flashcards in KEY TERMS Deck (55):
Chain of command
Route through which orders are passed down in the hierarchy
Authority to pass down work from superior to subordinate.
Span of control
Number of people a person is directly responsible for in a business
Internal structure of a business as shown by an organisation chart
Diagram that shows the different job roles in a business and how they relate to each other.
Order or levels of responsibility in an organisation from the lowest to the highest
Right to command and make decisions
Someone who is responsible for the administration of workers' pay in an organisation
Someone who keeps records or accounts in an office
People in the hierarchy who work under the control of a more senior worker
Type of organisation system where most decision are made at the top of the organisation and then passed down the chain of commands
Type of organisation system where decision making is pushed down the chain of command and away from the top
Shareholders are legally responsible for the debts of a company according to how many shares they own.
Memorandum of association
Document that describes what the company has been formed to do, gives details about the company, including: name, address, objectives, number of shares issued and amount of capital raised.
Private limited company
Private company limited by shares were the shareholder's properties are kept securily
The entrepreneur who wishes to open a new branch of a franchised chain( who pays the franchisor to do so)
The owner of a brand. E.g. McDonalds, the body shop
Public Limited Company ( PLC )
A limited company whose shares are freely sold and traded, with a minimum share capital of £50 000 and the letters PLC after its name
Anyone with an interest in the company
It is when a company is owned and controlled by 2 to 20 people.
Public Sector Organisation
Their aim is not to make a profit, it is to provide a service. They are run by the government. E.g. firemen, police
Person who takes risks and sets up businesses; individual who organices the other factors of production and risks their own money in a business venture
An individual that owns and controls a business and may or may not employ other people.
Business where there is no legal difference between the owner and the business
Business that has a separate legal identity from that of its owners. E.g. PLCs
The process of a company 'going public'
A market for shares in PLCs
Where two or more companies share the cost responsibility and profits from a business venture
New business activity that involves taking risks
Specialist investors ( individuals or companies ) who provide money for business purposes, often to new businesses
Transfer of public sector resources to the private sector business
Paying part of the costs ( often by the government in business)
Market where it is more efficient to have just one organisation meeting total market demand
Business organizations owned and controlled by the state/ government .
Basic systems and structures that a country or organisation needs in order to work properly E.g. Basic power lines for new housing development
Production involving the extraction of raw materials from the earth
Production involving the conversion of raw materials into finished and semi-finished goods.
Factory where parts are put together to make a finished product
Production of services in the economy
Areas of land that were once use for urban development.
Using changes in interest rates and the money supply to manage the economy
Repatriation of profit
Where a multinational returns its profits from an overseas venture to the country where it is based, typically from a developing country to a developed country
Money in foreign currency held by a country and used to support its own currency and to pay for imports and foreign debts
Group of countries situated in the same region that join together and enjoy trade free of barriers
Taking on more work than a business can afford to fund effectively.
Starting a business with insufficient capital
Document that shows clearly the tasks, duties and responsibilities expected of a worker for a particular job
Stocks of goods. There are 3 types of inventory:
- raw materials inventory
- work-on-process inventory
- finished goods inventory
Obstacles that prevent effective communication between a sender and a receiver
Standard document used to collect information from a job seeker
Resources that are used repeatedly for a period of time by a business such as properties, tools, vehicles and machinery
Using non-approved channels when communicating
Amount of money invested in a business
Personal profile of the type of person needed to do a particular job